Some Relief for those who shave with a Blade

If you use razors you know they've gotten pretty expensive in recent years. But relief could be on the way in the form of a price war.

Marketing professor John Zhang at Pennsylvania's Wharton School of Business says Internet upstarts like Dollar Shave Club and Harry's have sparked a price war.

"Today's shoppers all have a smart phone in hand and they can easily compare prices and search around for the best deals. That considerably reduces the flexibility of the firms in setting prices."

Professor Zhang says this is not good news for shaving supply giants like Proctor & Gamble.

"Imagine if a shopper is accustomed to paying $6 for a razor and a new brand comes along that sells the same quality item for $1, it becomes difficult for them to switch back to the more expensive one."

Professor Zhang says it's not just razors; we may see price wars for things like diapers and shampoo for the same reason. Kimberly Clark and Colgate-Palmolive join P&G in the worrying game.


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